विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
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Ramalingam Kalirajan8315 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on Apr 29, 2025
Asked on - Apr 29, 2025
Hello. should i continue investing in Hybrid equity funds or should i shift those funds to midcap and index funds??
Ans: You are currently investing in hybrid equity funds.
Now you're thinking of shifting to midcap or index funds.
Let’s analyse each of these based on your possible goals and situation.
First, Let’s Understand Hybrid Equity Funds
Hybrid equity funds balance equity and debt in one fund.
They offer stability from debt and growth from equity.
They are good if you want moderate returns with lower volatility.
Suitable if your goal is 3 to 5 years away or if you are conservative.
Gives a smoother ride during market ups and downs.
What Happens If You Move to Midcap Funds?
Midcap funds invest in medium-sized companies with high growth potential.
But midcap funds are very volatile in the short term.
Risk is much higher, though potential return is also higher.
If your goal is more than 7 years away, and you can handle ups and downs, only then consider midcap funds.
Don’t shift to midcaps just because of recent past returns.
Midcaps require strong patience and discipline during market corrections.
What About Index Funds?
Index funds are passive funds that copy the market index.
They do not try to beat the market returns. They only match it.
They look attractive due to low cost, but they come with no downside protection.
When market falls, index funds fall fully with the market.
No active manager is there to protect you or take advantage of opportunities.
Returns are limited to index performance. No extra gain possible.
In fact, when markets are sideways or falling, index funds underperform active funds.
Key Disadvantages of Index Funds (You Must Know)
No flexibility during market ups and downs.
Zero risk management by fund manager.
Index funds follow index blindly, even if companies in index are poor.
If market goes down 30%, index fund will also fall 30%.
You are on your own, with no expert adjusting portfolio.
Index funds underperform actively managed funds in India over long term, especially in mid and small caps.
Index investing may look attractive in theory, but in real-world, it is less flexible and more risky.
Why Staying in Hybrid Equity Funds May Be Better
You get a good balance of risk and reward.
Debt portion cushions fall during market crash.
Better suited for income generation, goal planning, and retirement strategy.
Actively managed hybrid funds give better flexibility and better returns in volatile markets.
Hybrid funds have performed better than index funds in falling markets.
If You Want to Grow More Aggressively
You can slowly start investing a small part into actively managed midcap funds.
Start with 10%-15% of your portfolio in midcap.
Keep rest in hybrid funds for stability.
Increase midcap exposure only if you are comfortable with the volatility.
Don’t move entire amount to midcap or index funds at once.
Don’t Invest in Direct Funds (Important Insight)
Direct funds may look like they give more returns.
But in reality, you miss professional guidance and ongoing review.
Investing without a Certified Financial Planner (CFP) and MFD support leads to poor choices.
Many people choose wrong funds or wrong time to exit.
Regular plans with a good CFP and MFD help you stay disciplined and goal-focused.
Advice matters more than saving 0.5% cost in direct plans.
Final Insights
Hybrid funds give balanced growth and peace of mind.
Midcap funds are good, but only for long-term investors with high risk capacity.
Index funds look simple, but have no risk control and no potential to outperform.
Don’t shift completely from hybrid to index or midcap funds.
Stay in hybrid funds, and add midcap gradually under expert guidance.
Always invest through regular plans with support from a CFP-qualified MFD.
Ensure your portfolio is aligned with your goals, risk profile, and timeline.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
(more)
Now you're thinking of shifting to midcap or index funds.
Let’s analyse each of these based on your possible goals and situation.
First, Let’s Understand Hybrid Equity Funds
Hybrid equity funds balance equity and debt in one fund.
They offer stability from debt and growth from equity.
They are good if you want moderate returns with lower volatility.
Suitable if your goal is 3 to 5 years away or if you are conservative.
Gives a smoother ride during market ups and downs.
What Happens If You Move to Midcap Funds?
Midcap funds invest in medium-sized companies with high growth potential.
But midcap funds are very volatile in the short term.
Risk is much higher, though potential return is also higher.
If your goal is more than 7 years away, and you can handle ups and downs, only then consider midcap funds.
Don’t shift to midcaps just because of recent past returns.
Midcaps require strong patience and discipline during market corrections.
What About Index Funds?
Index funds are passive funds that copy the market index.
They do not try to beat the market returns. They only match it.
They look attractive due to low cost, but they come with no downside protection.
When market falls, index funds fall fully with the market.
No active manager is there to protect you or take advantage of opportunities.
Returns are limited to index performance. No extra gain possible.
In fact, when markets are sideways or falling, index funds underperform active funds.
Key Disadvantages of Index Funds (You Must Know)
No flexibility during market ups and downs.
Zero risk management by fund manager.
Index funds follow index blindly, even if companies in index are poor.
If market goes down 30%, index fund will also fall 30%.
You are on your own, with no expert adjusting portfolio.
Index funds underperform actively managed funds in India over long term, especially in mid and small caps.
Index investing may look attractive in theory, but in real-world, it is less flexible and more risky.
Why Staying in Hybrid Equity Funds May Be Better
You get a good balance of risk and reward.
Debt portion cushions fall during market crash.
Better suited for income generation, goal planning, and retirement strategy.
Actively managed hybrid funds give better flexibility and better returns in volatile markets.
Hybrid funds have performed better than index funds in falling markets.
If You Want to Grow More Aggressively
You can slowly start investing a small part into actively managed midcap funds.
Start with 10%-15% of your portfolio in midcap.
Keep rest in hybrid funds for stability.
Increase midcap exposure only if you are comfortable with the volatility.
Don’t move entire amount to midcap or index funds at once.
Don’t Invest in Direct Funds (Important Insight)
Direct funds may look like they give more returns.
But in reality, you miss professional guidance and ongoing review.
Investing without a Certified Financial Planner (CFP) and MFD support leads to poor choices.
Many people choose wrong funds or wrong time to exit.
Regular plans with a good CFP and MFD help you stay disciplined and goal-focused.
Advice matters more than saving 0.5% cost in direct plans.
Final Insights
Hybrid funds give balanced growth and peace of mind.
Midcap funds are good, but only for long-term investors with high risk capacity.
Index funds look simple, but have no risk control and no potential to outperform.
Don’t shift completely from hybrid to index or midcap funds.
Stay in hybrid funds, and add midcap gradually under expert guidance.
Always invest through regular plans with support from a CFP-qualified MFD.
Ensure your portfolio is aligned with your goals, risk profile, and timeline.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Advait Arora1264 Answers |Ask - Follow
Financial Planner - Answered on May 24, 2023
Asked on - May 23, 2023English
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नमस्ते सर, निम्नलिखित एसआईपी के लिए सहायता की आवश्यकता है, मैं अभी निवेश कर रहा हूं। मुझे और क्या जोड़ना चाहिए क्योंकि मुझे अपना पोर्टफोलियो बढ़ाने की जरूरत है 1-आदित्य बिड़ला सनलाइफ फ्लेक्सीकैप फंड ग्रोथ रेगुलर। 2- एडलवाइस बैलेंस्ड एडवांटेज फंड ग्रोथ रेगुलर। 3- एचडीएफसी हाइब्रिड इक्विटी फंड ग्रोथ। 4- आईसीआईसीआई प्रूडेंशियल ब्लूचिप फंड ग्रोथ। या क्या मुझे उपरोक्त पोर्टफोलियो में अपना निवेश बढ़ाना चाहिए?
Ans: बहुत सारे म्यूचुअल फंड न खरीदें. बस मौजूदा लोगों में जोड़ें। मुझे आईसीआईसीआई प्रू ब्लूचिप फंड पसंद है। यह शीर्ष फंड है. आप इसमें और भी जोड़ सकते हैं. एचडीएफसी हाइब्रिड फंड भी अच्छा है।
धन्यवाद
कृपया ध्यान दें: निवेश की रणनीतियाँ आपकी जोखिम क्षमता पर निर्भर करती हैं, इसलिए कृपया अपने वित्तीय सलाहकार से परामर्श लें और फिर आगे का निर्णय लें।
अद्वैत अरोड़ा @wealthenrich
(more)
धन्यवाद
कृपया ध्यान दें: निवेश की रणनीतियाँ आपकी जोखिम क्षमता पर निर्भर करती हैं, इसलिए कृपया अपने वित्तीय सलाहकार से परामर्श लें और फिर आगे का निर्णय लें।
अद्वैत अरोड़ा @wealthenrich